Question

Riley Incorporated reports the following amounts at the end of the year (all amounts in $000): Cash Depreciation Expense Taxes Payable $ 16,140 3,210 1,020 Product Revenues Mortgage Payable Treasury Stock $ 112,500 38,000 650 Buildings Land Current Portion of Notes and Mortgages Payable 79,000 40,000 2,200 Salaries Accumulated Depreciation 62,800 21,730 Accounts Payable Net Accounts Receivable 18,500 23,500 Equipment Income Tax Expense Discount on Notes Payable 42,000 3,650 7,950 Interest Expense Notes Payable Utilities 4,000 25,650 350 Inventory Costs of Good Sold License Revenues 6,400 17,400 250 Advertising Expense Pre-Paid Expenses 11,300 900 Short Term Investments Wages Payable 2,500 3,200 In addition, the company had common stock of $75,000 at the beginning of the year and issued an additional $5,000 during the year. The company also had retained earnings of $20,700 at the beginning of the year and declared/paid dividends of $2,000 during the year. Prepare the income statement, statement of stockholders’ equity, and balance sheet. Using the account information above develop a Balance Sheet and Income Statement, then answer the next five questions. Q1. Calculate the Net Income After Interest and Taxes. Q2. Calculate the Total Amount of Current Assets Q3. Calculate the Total Amount of Liabilities. Include both current and long term debt. Q4. Calculate the Total Assets for Riley Incorporated. Remember to consider Contra-Assets when making the calculation Q5. Assume that the Net Income After Interest and Taxes for Riley Incorporated is $9,200 (it's not but make this assumption for this question only). Using the other account data shown above for Riley, what is the ending Retained Earnings balance? Q6. AR Balance % Uncollectible Current Accounts $140,000 1% 1 - 30 days past due $15,000 3% 31- 60 days past due $12,000 6% 61- 90 days past due $5,000 12% Over 90 days past due $7,000 30% Total Accounts Receivable $179,000 Grisson Company had a $400 balance in the Allowance for Doubtful Accounts at December 31, 2017, before the current year's provision for uncollectible accounts. An aging the the accounts receivable is provided above. What is the amount of bad debt expense that should be recorded for 2017? Q.7 12/31/2016 12/31/2017 Assets $265,000 $255,000 Liabilities $100,000 $110,000 Capital Stock ? $130,000 Retained Earnings ? ? The above data is for Richard's Bait Shop. During 2017, Richard's net income was $18,000 and $5,000 in dividends were paid out. Calculate the Capital Stock balance at the end of December 2016.

iley Incorporated (Graded Homework)

USE FINANCIAL DATA BELOW FOR HOMEWORK QUESTIONS 1 - 5

Riley Incorporated reports the following amounts at the end of the year (all amounts in $000):

Cash	$16,140	Product Revenues	$112,500
Depreciation Expense	3,210	Mortgage Payable	38,000
Taxes Payable	1,020	Treasury Stock	650
Buildings	79,000	Salaries	62,800
Land	40,000	Accumulated Depreciation	21,730
Current Portion - Notes and Mortgage Payable	2,200
Accounts Payable	18,500	Equipment	42,000
Net Accounts Receivable	23,500	Income Tax Expense	3,650
		Discounts on Notes Payable	7,950
Interest Expense	4,000	Inventory	6,400
Notes Payable	25,650	Costs of Goods Sold	17,400
Utilities	350	License Revenues	250
Advertising Expense	11,300	Short Term Investments (Securities)	2,500
Prepaid Expense	900	Wages Payable	3,200

In addition, the company had common stock of $75,000 at the beginning of the year and issued an additional $5,000 during the year. The company also had retained earnings of $20,700 at the beginning of the year and declared/paid dividends of $2,000 during the year. Prepare the income statement, statement of stockholders’ equity, and balance sheet.

Using the account information above develop a Balance Sheet and Income Statement,

1. Calculate the Net Income After Interest and Taxes

2.Calculate the Total Amount of Current Assets

3.Calculate the Total Amount of Liabilities. Include both current and long term debt.

4.Calculate the Total Assets for Riley Incorporated. Remember to consider Contra-Assets when making the calculation

5.Assume that the Net Income After Interest and Taxes for Riley Incorporated is $9,200 (its not but make this assumption for this question only). Using the other account data shown above for Riley, what is the ending Retained Earnings balance?

ge	AR Balance	% Uncollectible
Current Accounts	$140,000	1%
1-30 days past due	$15,000	3%
31-60 days past due	$12,000	6%
61-90 days past due	$5,000	12%
Over 90 days past due	$7,000	30%
Total Accounts Receivable	$179,000

Grisson Company had a $400 balance in the Allowance for Doubtful Accounts at December 31, 2017, before the current year's provision for uncollectible accounts. An aging of the accounts receivable is provided above. What is the amount of bad debt expense that should be recorded got 2017?

12/31/2016	12/31/2017
Assets	$265,000	$255,000
Liabilities	$100,000	$110,000
Capital Stock	?	$130,000
Retained earnings	?

The above data is for Richard's Bait Shop. During 2017, Richard's net income was $18,000 and $5,000 in dividends were paid out. Calculate the Capital Stock balance at the end of December 2016.

Answer 1

	TRIAL BALANCE
		Debit	Credit
	Cash	$16,140
	Depreciation Expense	$3,210
	Taxes Payable		$1,020
	Buildings	$79,000
	Land	$40,000
	Current Portion - Notes and Mortgage Payable		$2,200
	Accounts Payable		$18,500
	Net Accounts Receivable	$23,500
	Interest Expense	$4,000
	Notes Payable		$25,650
	Utilities	$350
	Advertising Expense	$11,300
	Prepaid Expense	$900
	Product Revenues		$112,500
	Mortgage Payable		$38,000
	Treasury Stock	$650
	Salaries	$62,800
	Accumulated Depreciation		$21,730
	Equipment	$42,000
	Income Tax Expense	$3,650
	Discounts on Notes Payable	$7,950
	Inventory	$6,400
	Costs of Goods Sold	$17,400
	License Revenues		$250
	Short Term Investments (Securities)	$2,500
	Wages Payable		$3,200
	Common stock		$80,000
	Retained earnings		$20,700
	Dividend	$2,000
	TOTAL	$323,750	$323,750
	INCOME STATEMENT
	Product Revenues		$112,500
	Costs of Goods Sold		$17,400
	Gross Profit		$95,100
	Other Revenue:
	License Revenues		$250
	Total gross Profit		$95,350
	Less:Operating Expenses:
	Depreciation Expense	$3,210
	Utilities	$350
	Advertising Expense	$11,300
	Salaries	$62,800
	Total operating expenses		$77,660
	Income Before Interest & Tax		$17,690
	Interest expense		$4,000
	Income Before Tax		$13,690
	Income Tax Expense		$3,650
	Net Income afterinterest & taxes		$10,040
	STATEMENT OF STOCKHOLDERS EQUITY
	Common Stock		$80,000
	Retained earning		$28,740	(20700-2000 of dividend paid)+10040(net income)
	Treasury stock		($650)
	Total stockholders equity		$108,090
	BALANCE SHEET
	ASSETS
	Current assets:
	Cash	$16,140
	Net Accounts Receivable	$23,500
	Prepaid Expense	$900
	Inventory	$6,400
	Short Term Investments (Securities)	$2,500
	Total Current assets	$49,440
	Fixed Assets:
	Buildings	$79,000
	Land	$40,000
	Equipment	$42,000
	Gross fixed assets	$161,000
	Less:
	Accumulated Depreciation	$21,730
	Net Fixed Assets	$139,270
	TOTAL ASSETS	$188,710
	LIABILITIES:
	Current Liabilities:
	Taxes Payable	$1,020
	Wages Payable	$3,200
	Current Portion - Notes and Mortgage Payable	$2,200
	Accounts Payable	$18,500
	Total Current Liabilities	$24,920
	Long Term Liabilities:
	Notes Payable	$25,650
	Discounts on Notes Payable	($7,950)
	Mortgage Payable	$38,000
	Total long term liabilities	$55,700
	TOTAL LIABILITIES	$80,620
	Shareholders Equity	$108,090
	Total Liabilities & Shareholders equities	$188,710
1	Net Income after interest & taxes		$10,040
2	TOTAL amount of current assets		$49,440
3	TOTAL amount of Liabilities		$80,620
4	TOTAL Assts		$188,710
5	Ending Retained earning if net income is $9200
	Ending Retained earning		$        27,900	(20700-2000+92000